People From New York City

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April 10, 2026

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April 10, 2026

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"I quote somewhere a correspondence with Ken Arrow, after he wrote Arrow and Hahn. I wrote to him and I said that the trouble is that neoclassical economists confuse risk with uncertainty. Uncertainty means non-probabilistic. And he said, 'Quite true, you're quite correct that Keynes is much more fruitful, but the trouble with the General Theory is, those things that were fruitful couldn't be developed into a nice precise analytical statement, and those things that could were retrogressions from Keynes but could be developed into a nice precise analytical statement.' That's why mainstream economics went that route. And my answer is, I would hope that even Nobel Prize winners didn't believe that regression is growth, which it clearly isn't. But that's right. The fear that everybody has, you see, is nihilism: you won't be able to say what's going to happen . Well, evolutionists don't worry about being unable to predict. You ask the evolutionists, who tell you what happened in the past, just what next species is going to appear, and the answer is, anything could. Right? Does that bother people? Explanation is the first thing in science. If you can't explain, you don't have anything. But you needn't necessarily predict. Now, if you know the future's uncertain, what does that mean? It means basically, the way Hicks put it in his later years, that humans have free will. The human system isn't deterministic or stochastic, which is deterministic with a random error. Humans can do thins to change the world."

- Paul Davidson (economist)

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"Then what you find out is, what humans then do is, they create institutions - that's where institutionalism has a tie with Post Keynesianism - they create institutions which limit outcomes, which permit you to control outcomes as long as the society agrees to live by the rules of the game, which are the rules of the institutions. Now, if society rejects those rules, then society breaks down. What are the rules of the game? Well, money is a rule of the economic game. There are lots of human economic arrangements which don't use money. The family unit solves its economic problems, of what and how to produce within the family, without the use of money and without the use of markets. All the 24 hours of the day are either employed or leisure. There's no involuntary unemployment in the family. So you can solve the problem, but it's a different economy. We are talking about a money-using economy, and money is a human institution. You have to ask yourself, why was it created? Why is it so strange? You see, in Lerner, in neoclassical economics, money is a commodity. It's peanuts, with a very high elasticity of production. If people want more money, that creates just as many jobs as if people want goods. Then you have to say to yourself - and this was the question that Milton Friedman asked me in the debate - he says, 'That's nonsense; Davidson says money is not producible. Why are there historical cases where Indians used beads as money? Aren't beads easily producible?' But not in the Indian economy. They didn't know how to produce them."

- Paul Davidson (economist)

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"A developer has bought the central-city apartment building where Sandy, a single mother, has been living with her two children; he plans to convert it into condominiums. … She looks in the newspaper and online for apartment rental advertisements, and she is shocked at the rents for one- and two-bedroom apartments. … Sandy searches for two months, with the eviction deadline looming over her. Finally she settles for a one-bedroom apartment a forty-five-minute drive from her job. … Sandy sees no other option but to take the apartment, and then faces one final hurdle: she needs to deposit three months' rent to secure the apartment. She has used all her savings for a down payment on the car, however. So she cannot rent the apartment, and having learned that this is a typical landlord policy, she now faces the prospect of homelessness. This mundane story can be repeated with minor variations for hundreds of thousands of people in the United States. … She is largely a victim of circumstances beyond her control—the landlord’s decision to sell the apartment building, a sex-segregated labor market that makes low-wage service jobs the primary work opportunity for women without college or technical training, the "spatial mismatch" that locates those jobs far from most affordable housing, and so on. … Most people react to a situation like Sandy's with the intuition that something is wrong. But what is the wrong, and who is responsible for it? The wrong is structural injustice."

- Iris Marion Young

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